Sensex hits 13100
Three days after it first hit 13000, the barometer index BSE Sensex hit 13,100 in early trade today.
At 10:50 IST, Sensex was up 51 points at 13,084. The barometer index eased a bit after it surged as much as 69.66 points to a high of 13,102.70 at 10:35 IST.
Index heavyweight Reliance Industries (RIL) has played a key role in Sensex’s surge. RIL was up 0.5% to Rs 1271.25. The stock surged over 3% on Wednesday after it doubled its natural gas output estimate from deep-sea fields to 80 million cubic metres a day. RIL has a huge 11.6% weightage in Sensex.
Among other blue chips which have aided Sensex’s surge from 13,000 to 13,100 are Bharti Airtel (BAL) and L&T. BAL was up 1.3% to Rs 548.65. The stock had risen 2% on Wednesday to Rs 541.20.L&T was up 1.2% to Rs 1338. L&T had risen 0.6% on Wednesday to Rs 1321.10.
Continued FII inflow and strong Q2 results have boosted the bourses over the past few days. FIIs inflow in October 2006 totaled Rs 8013 crore, compared to their inflow of Rs 5425 crore in September and Rs 4643 crore in August 2006. FIIs have stepped up buying in recent months notwithstanding apprehensions regarding stretched valuations. Sustained FII inflows are due to strong global liquidity. Low US rates keep foreign investors thirsty for higher returns in emerging markets. For the third straight time, the US Federal Reserve on 25 October kept US interest rates unchanged at 5.25%.
Mutual funds, too, have stepped up buying recently. Their net inflow in three trading sessions between 27 October to 31 October totaled Rs 511 crore.
The strong FII inflows into India are due to strong earnings growth of India Inc coupled with increasing recognition of India’s long-term growth prospects. India’s growth drivers are a favourable demography (large share of young population), robust domestic consumption and acceleration in infrastructure creation. Prime Minister Mahmohan Singh has promised a complete policy on infrastructure, including regulatory and institutional framework, to make it attractive for private participation in the near future.
Strong inflow is also expected from domestic institutional investors. LIC alone is expected to invest about Rs 10,000 crore in equities this financial year.Meanwhile, a large mop up from IPO is expected in the next two months. The major IPOs in the pipeline are Cairn India and DLF.
At 10:50 IST, Sensex was up 51 points at 13,084. The barometer index eased a bit after it surged as much as 69.66 points to a high of 13,102.70 at 10:35 IST.
Index heavyweight Reliance Industries (RIL) has played a key role in Sensex’s surge. RIL was up 0.5% to Rs 1271.25. The stock surged over 3% on Wednesday after it doubled its natural gas output estimate from deep-sea fields to 80 million cubic metres a day. RIL has a huge 11.6% weightage in Sensex.
Among other blue chips which have aided Sensex’s surge from 13,000 to 13,100 are Bharti Airtel (BAL) and L&T. BAL was up 1.3% to Rs 548.65. The stock had risen 2% on Wednesday to Rs 541.20.L&T was up 1.2% to Rs 1338. L&T had risen 0.6% on Wednesday to Rs 1321.10.
Continued FII inflow and strong Q2 results have boosted the bourses over the past few days. FIIs inflow in October 2006 totaled Rs 8013 crore, compared to their inflow of Rs 5425 crore in September and Rs 4643 crore in August 2006. FIIs have stepped up buying in recent months notwithstanding apprehensions regarding stretched valuations. Sustained FII inflows are due to strong global liquidity. Low US rates keep foreign investors thirsty for higher returns in emerging markets. For the third straight time, the US Federal Reserve on 25 October kept US interest rates unchanged at 5.25%.
Mutual funds, too, have stepped up buying recently. Their net inflow in three trading sessions between 27 October to 31 October totaled Rs 511 crore.
The strong FII inflows into India are due to strong earnings growth of India Inc coupled with increasing recognition of India’s long-term growth prospects. India’s growth drivers are a favourable demography (large share of young population), robust domestic consumption and acceleration in infrastructure creation. Prime Minister Mahmohan Singh has promised a complete policy on infrastructure, including regulatory and institutional framework, to make it attractive for private participation in the near future.
Strong inflow is also expected from domestic institutional investors. LIC alone is expected to invest about Rs 10,000 crore in equities this financial year.Meanwhile, a large mop up from IPO is expected in the next two months. The major IPOs in the pipeline are Cairn India and DLF.
posted by SY at 5:31 PM
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